Abstract Since the National Development and Reform Commission stated in February this year that it is conducting a peripheral investigation on the vertical monopoly of auto parts, the China Automobile Maintenance Association and the China Insurance Association have jointly called for breaking the monopoly of OEMs and 4S stores in the aftermarket. ...
Since the National Development and Reform Commission stated in February this year that it is conducting a peripheral investigation on the vertical monopoly of auto parts, the China Automobile Maintenance Association and the China Insurance Association have jointly called for breaking the monopoly of OEMs and 4S stores in the aftermarket to promote automobiles. The continuous and healthy development of the maintenance industry, especially in April this year, the two associations jointly released the status quo of the “zero ratio†of the Chinese automobile (the ratio of the price of a car accessory to the sales price of the whole vehicle). One extreme case shows that The sum of the prices of all the accessories of a car can buy 12 cars, with a zero ratio of 1200%. This is not only the first time in the country to disclose the "zero ratio" of automobiles, but also to the climax of whether the parts of the automobile maintenance sector involve monopoly. Some people in the industry who know this matter told the International Business Daily that since the current insurance premium is calculated based on a certain ratio of the price of the car, the price of the accessory directly determines the level of maintenance costs, even if the price of the new car is the same, if the consumption The purchase of a vehicle with a higher zero ratio factor means that a relatively higher maintenance cost may be required for subsequent use. This is obviously unfair to insurance companies, so it is purposeful for the two associations to do so. In particular, the insurance association hopes to use the “zero ratio†factor to determine the level of premiums.
However, the purpose of the two associations, as well as the extreme cases chosen to achieve this, are not the focus of this article. The newspaper hopes to use this as an "introduction" to investigate and explore the interest chain of parts and components in the field of automobile maintenance and restore a real market environment.
In addition, with the Ministry of Transport recently released the "Guiding Opinions on Soliciting the Transformation and Upgrade of the Automobile Maintenance Industry to Improve Service Quality (Draft for Comment)" (hereinafter referred to as "Opinions"), it aims to break through the existence of auto repair parts through feasible means. After the monopoly, it further highlights the necessity of this investigation report.
Why is the price difference between the original factory and the deputy factory?
When the reporter conducted a market survey of parts in the field of automobile maintenance, it was found that these parts are mainly divided into original parts and sub-factory parts (as to whether they are counterfeit or fake products are not within the scope of this article). The original parts are spare parts approved by the main engine factory (automobile manufacturer), which are sourced from the parts suppliers designated by the main engine factory or the main engine factory; and the deputy factory parts are spare parts that have not been approved by the main engine factory. A component supplier specified by a non-host factory.
Since the original parts are mainly supplied to the 4S shop dealers identified by the OEM, and the deputy parts are more flowing into the auto parts city or the auto repair shop, making the same type of accessories, the market price difference is huge.
For example, the brake pads of the original 4S shop are more than 1 to 1.5 times the price of the sub-factory of the auto parts city; and the price difference of the oil is more than twice as many as three times. The reporter also found in the survey that the higher the luxury brand, the greater the price difference between the original parts of the 4S shop and the sub-factory parts of the auto parts city, and the price difference of some accessories is even more than 10 times.
For such a huge price difference, the industry believes that the safety and consistency of accessories, especially core components (such as safety, performance chassis, power system, electronic control bus system, etc.) are the key reasons. Most of the parts suppliers interviewed by the reporter also agreed that the “threshold†of the parts suppliers that have passed the certification of the main engine factory is quite high, not only the high-cost investment, but also the hardware and software configuration. Accreditation is also subject to targeted co-development with the OEM, most of which is borne by the component supplier.
Shenzhen Yudi Daimler New Technology Co., Ltd. CEO Lian Yubo once told the International Business Daily that one of the main gains after the joint venture with Daimler is to adhere to the development standards and processes of parts and components without compromise – "In the past, a component was tested in the standard durability test of 100,000 kilometers. When it was 90,000 kilometers, it was broken. We passed it. But the Germans did not do it. After the improvement, we must start from the beginning and do 100,000 kilometers. Until the passage. The cost of doing so is high, but it is the premise of quality and safety assurance."
In addition, the reporter learned a negative textbook, that is, Tesla, the reality of its model fires many times, and recently happened in the accident, the whole car broke into two tragedies. In the view of the parts industry, many of the components used are not built separately for the Tesla models, but are directly integrated with the components of other brands that have been scaled up.
A member industry veteran told the International Business Daily that Tesla has reduced costs and that the individual components themselves are indeed of high quality, but the matching between the parts is very poor. The impact of reliability and safety during use is enormous. Now Tesla has to start again here, doing a lot of parts matching and road test according to the standard process of automobile R&D, so that it can meet the requirements of the overall use of automobile products, but such improvement will greatly increase the cost. .
In addition, the veteran also told reporters that even the certified original parts may not be able to maintain consistency of quality. He himself saw in the stamping workshop of the original factory production factory that one brake piece for the whole vehicle assembly was pressed out one piece at a time, and the same brake piece used for maintenance was pressed out four pieces at a time, "You say it Is there a difference in safety standards?"
However, from this point of view, it also reflects the necessity of consumers to use the original parts, that is to say, the original parts certified by the OEM may have problems, not to mention the non-certified sub-factories. The aforementioned industry veterans said that the relevant US regulations require dealers to use original parts, which is also the reason.
Overall, the cost and price of the original parts of the 4S shop is much higher than that of the sub-factory of the Auto Parts City. It makes sense. The key is how much higher should be raised and whether the original parts themselves can be consistent.
Why are the original parts prices different?
In the reporter's investigation, not only the huge price difference between the original factory and the auxiliary factory parts was found, but also the price difference between the original parts. It is understood that as the supplier of parts and components designated by the main engine factory, most of the parts produced by it are supplied by three channels, one for the whole vehicle production parts of the main engine factory, the other for the supply of 4S shop repair parts, and the third for the authorized dealers. Accessories. The price difference referred to here is mainly between the latter two, but the price difference between the two is far less than the difference between the original parts and the deputy parts, especially the authorized dealers need to go to the lower level dealers or auto repairs. The factory carries out wholesale, and the retail price of the terminal has a certain price increase.
In other words, the channel is different, which determines the price difference of the original parts in the market, but is the price status reasonable? The veteran of the above-mentioned components answered this question with the phrase "The price is reasonable because of different channels."
The international component manufacturer Bosch also responded to this question, that is, different channels have met the different needs of the market: for example, 4S stores are more inclined to provide maintenance services and maintenance during the warranty period, and the market positioning is relatively high; Authorized dealers are constantly developing and perfecting themselves, hoping to provide cost-effective after-sales service and maintenance services outside the warranty period. The model of street-side service stations is more inclined to repair services and is relatively simple. Maintenance service.
Even so, consumers are still worried about the high price of the original parts of the 4S shop. According to the above-mentioned seniors, the original parts of the auto parts market (including authorized parts dealers) are generally supplied directly from the parts factories. These parts dealers are also sub-agents, second-level agents, and so on. Depending on the accessories, the profit margin between each level is about 10% to 20% of the previous level, but it is hard to say that the channel that goes into the original parts of the 4S shop is not such a profit margin.
According to the investigation by the reporter, the original parts entering the 4S shop are generally delivered to the spare parts department of the main engine factory through the parts supplier, and then sent by the spare parts department to the cooperative parts center of each place, and then distributed to the 4S shop by the parts center.
The general manager of the sales of a mid-range brand joint venture company told the International Business Daily that most of the joint venture's parts flow is like this. The fare increase is generally between the parts supplier and the spare parts department, from the parts center to the 4S shop. There is one, and there is no increase in the price from the spare parts department to the parts center. Even the parts center that cooperates with the logistics company does not increase the price.
At the same time, the general manager also said that 10% to 20% of the market channel price increase space, the basic category of the brand is also the same, but according to the brand value, its markup is also high, that is, the brand value is high, the accessory price increase is also high, and Luxury brands are even higher, and they must not be a fare increase of around 20%.
In addition, the reporter also learned that the general delisting or off-shift models must be kept for at least 5 years, up to 10 years of accessories. For the dealers of Auto Parts City, it is normal to press the accessories of several hundred thousand yuan in the end, and for the original parts of the 4S shop, the inventory cost is mostly from the OEM. The burden, some of the mainframe factories still have 10 years ago, the parts of the delisted models, these accessories not only take up the cost of the main engine, but also make the OEM to pay for the storage costs of the new models.
However, the reporter did not get a reply from the luxury brand on this issue, but the operating cost and accessory cost of the luxury brand is higher than that of the popular brand. These costs are diluted to the company's every profitable product, and accessories are no exception.
However, the OEM has a strong premium in the field of accessories, can they be judged that they are suspected of monopoly? A sales executive of a mainframe told International Business Daily that the brand products of the main engine factory are fully competitive in the market, not only the whole vehicle, but also the accessory service. "If your parts service is better than the competitors High, then this will undoubtedly increase the competitiveness of the opponent, which is what the OEM does not want to see."
The recent decline in the price of after-sales service of Mercedes-Benz just confirmed the words of the executives of the main engine factory. It is understood that from July 1st, Mercedes-Benz's maintenance and repair prices will be reduced in all directions, the reduction rate is at least 20%, and the highest will reach 50%.
Mercedes-Benz premiums have been higher than Audi and BMW, so they have been criticized. The data shows that the price of the basic B package maintenance (Dabao) such as Mercedes-Benz A and C-class vehicles is between 1,200 yuan and 1,245 yuan. After the adjustment, Mercedes-Benz's package price is a few hundred dollars cheaper than BMW's same-class car, but has a comparative advantage.
The dealer really has no problem?
The original parts are expensive, and the public opinion not only points to the OEM, but also the parts suppliers and distributors on the industrial chain are accused of being the initiators of high prices. And a parts supplier responded to the reporter, the market terminal price is mainly determined by the OEM according to market conditions, as part suppliers sometimes have to be forced by the OEM's pricing mechanism, low-cost shipment; and authorized distribution The price of the business is determined by the dealer according to market conditions.
So what role does the dealer play behind the high price of the original factory? According to Article 25 of the “Implementation Measures for Automobile Brand Sales Managementâ€: “Automobile brand dealers shall engage in automobile brand sales, after-sales service, spare parts supply and other activities within the scope authorized by the automobile supplier.†The industry naturally exports the main engine factory and distribution. The business believes that it is a community of interests, and the dealers earn a lot of profits in the market after the car maintenance and repair, but is this the case?
The general manager of Zhengzhou Nissan, a distributor, said to the International Business Daily that the price of the original parts supplied to the 4S shop by the main engine factory was set by the former and could not be added or reduced. Under normal circumstances, 4S stores have no profit on the original parts, and 4S stores mainly earn working hours. “This is also why dealers want to be able to diversify the introduction of other suppliers in terms of repair parts, rather than monopolizing the original parts designated by the OEM.†The general manager of the above-mentioned joint venture said that it is said that the country is studying the corresponding Policy to break this situation.
The general manager’s policy is likely to include the “Opinionsâ€, which focus on the specific method of breaking the monopoly of auto repair parts. The first is to encourage the original parts to enter the independent after-sales market, which is to encourage the original parts companies to The accessories are sold to the independent after-sales market; the second is to encourage authorized maintenance companies to resell and supply original parts to unauthorized repair companies; the third is to encourage the development of “homo-compatible partsâ€, that is, the accessories of the same quality as the original parts.
In addition, the "Opinions" also proposed the disclosure of vehicle maintenance information, coupled with the opening of the original repair parts and the coordinated development of homogeneous parts, aiming to create opportunities for fair competition in the automotive aftermarket, and consumers' choices will also increase.
However, in the current policy environment, 4S shop dealers also have their own countermeasures. In the reporter's investigation, if consumers buy accessories, they must be served by 4S stores. This tying phenomenon is extremely common in 4S stores and is unreasonable. However, considering the fact that 4S shop single-sale accessories have no profit, this is also an excuse. But another situation cannot be forgiven.
The reporter's investigation found that many 4S shops use the original factory parts, but they use the deputy factory parts. That is to say, the 4S shop has the original factory parts and the deputy factory parts. Moreover, due to information asymmetry, it is difficult for consumers to know whether the new parts that the 4S shop has replaced are original or deputy.
The above-mentioned veterans of the parts said that this is actually due to the policy, and the 4S shop wants to make more profits. However, the proportion of such deputy factory parts in 4S stores is not much. Because of the “cheese†that drives the profit of the main engine parts, the OEM will check the 4S shop through regular parts inventory, and will be punished once found.
Insiders of the joint venture company also acknowledged this to the International Business Daily and said that their spare parts department launched an action called “Sword†for similar situations, which is to check the accessories of the 4S shop regularly. There are no deputy factory parts flowing into the 4S shop. If there is, according to the seriousness of the situation, the fine is imposed, the exit of the excellent dealers, and even the punishment of withdrawal, which are closely related to the long-term interests of the dealers.
And the person also admitted that such inspections in the Chinese market are also difficult. For example, there are inspectors for 4S stores all over the country, but over time, the inspectors are talking from the dealer's point of view, which makes it difficult to find problems and subsequent inspections.
In addition, the reporter also found that, as in the auto parts city, there are still some original equipment imported from the abnormal channels (shipped from the authorized dealers of the parts suppliers). Senior personnel of the above-mentioned components pointed out that although the original workpieces are unknown, they cannot escape the possibility of outflow from the OEM or 4S stores.
In summary, from the safety and consistency of the accessories, as well as the cost of research and development, warehousing and channel, the original factory and the sub-factory, as well as the original parts of the 4S shop and the original parts in the auto repair market, the price difference is It is normal, and in the United States, there are provisions for the original factory, which is a prerequisite for protecting the interests of consumers. However, whether the 4S shop dealers in China can only introduce the original parts from the OEM, can they purchase the parts suppliers identified by the OEM or the dealers authorized by these parts suppliers, which has become a topic of controversy in the industry. So for this issue, as well as the problem of high “zero ratio†of domestic accessories, this newspaper will give priority attention in subsequent reports.
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